December 2024 - Spain - Glovo decides to move to employment based model for delivery riders in Spain

Delivery Hero's Spanish subsidiary, Glovo, anticipates decisions from Spanish labor authorities regarding the alleged misclassification of delivery riders under its freelance model introduced in 2021. To address legal uncertainties, Glovo is transitioning to an employment-based model for its delivery riders in Spain. This change is expected to impact adjusted EBITDA by approximately €100 million in FY 2025, although Glovo still projects positive adjusted EBITDA in Spain for that year.

The company will increase its contingency range to €440-770 million in its 2024 financial report, up from €330-550 million disclosed earlier. These contingencies cover social security, fines, VAT claims, and other charges. Delivery Hero does not plan to recognize provisions, as it disputes the legal basis for the reclassification decisions. Meanwhile, Glovo will temporarily pay or guarantee required amounts as legal proceedings continue.

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